DI's 2025-plan

How to keep the progress going

DI has formed a plan to keep Denmark prosperous – read more about our proposals.

In short

If the politicians apply all the proposals of DI’s plan, we can – in combination with reforms passed since 2015 – create more than 120,000 new jobs in the private sector and increase wealth in Denmark by at least DKK130bn in 2025.

With DI’s 2025 plan we can finance world-class education, effective treatments in Danish hospitals and research in the top international league. In total, we can invest more than DKK30bn in our common future.

This is feasible without leaving the bill for our children and grandchildren to pay. DI’s 2025 plan is fully financed and will ensure a balanced government budget in 2025.

What is the plan?

Denmark is a prosperous country none the least due to successful trade with other countries; due to innovative leaders and employees in Danish companies, who skillfully seize new opportunities and win orders and export revenue in the global competition; and due to ongoing efforts to ensure that more citizens become active participants at the Danish labour market.

We must continue along this path if Denmark is to maintain its position as one of the wealthiest countries in the world.

Danish companies are increasingly in need of talented men and women, who can shape the ideas of the future and bring them into life. Our society needs more people to be working – so we can afford investments in education, infrastructure and digitization. Therefore, DI proposes several reforms that will bring more people into work instead of receiving public benefits.

Denmark shall thrive on the bright ideas of its citizens. Therefore, we must increase investments in research, education, infrastructure and digitization, enabling Danish companies to continue their development of valuable products for the global market.

Sales of Danish products to international markets are conditional on good prices. Therefore, doing business in Denmark must become cheaper and easier. Denmark will not and shall not be the cheapest country to operate in, but we should avoid obstructing the competitiveness of Danish companies because of taxes that exceed levels in competing countries.

Source: DI

More productive and innovative companies and employees

Wealth increases by DKK51bn

Lower corporate tax etc. increases wealth by DKK25½bn

The higher the corporate tax, the less money for companies to finance new machines, product developments or other investments. DI suggests that the corporate tax is aligned with the countries surrounding us to avoid having it as an undue impediment to the competitiveness of Danish companies. We propose a gradual reduction of corporate tax to a level of 13 per cent in 2025. The corporate tax reduction can increase wealth by almost DKK25bn in 2025, of which a smaller part is due to higher employment accounted for in the section ‘More jobs in private companies’. DI also aims to reduce or eliminate many indirect taxes for the business sector and we suggest that the Parliament repeals the constraint on exploiting deficits, removes the tax at source for foreign investors and much more.

We must ensure that Danish companies can compete internationally, now and in the future. They must be able to develop new, competitive products and have access to highly skilled employees. Therefore, DI suggests that we raise research expenditures from 1 to 1½ per cent of GDP, and that we allocate more money to education.

DI proposes that we invest in new and improved infrastructure to make it easier for companies to transport goods and for employees to go to work. This strengthens the ability of the companies to compete and create growth.

Furthermore, there are great gains to realize from digitizing the public administration. DI wishes to increase investments in infrastructure and digitization by DKK30bn over the next seven years.

It is given that we need rules to govern companies. Sometimes, however, the decisions made at Christiansborg and in Bruxelles seem out of touch with the daily life on the workplace. Many requirements are overly complex, and sometimes the administrative handling of cases is too slow. DI suggests relieving the burden on companies by DKK6bn in 2025. Thereby, companies can spend their resources on developing and selling products instead.

DI also strives to reduce some of the taxes and other politically imposed expenses that make it difficult for companies to run a thriving business. It is essential to the competitiveness of Danish companies that there are no extraordinary costs associated with running a business in Denmark as compared to neighbouring countries.

All companies need energy and water. Most companies also need to dispose of waste. Thus, a stable and cost-efficient utilities sector is fundamental to growth, employment and productivity. We have come a long way with the electricity sector. DI works to ensure that the water and sewage sectors can achieve a similar potential.

Lower income- and consumption taxes increase productivity by DKK15bn.

DI proposes an elimination of the maximum cap on the earned income tax credit and the top tax rate. This will imply that people in employment gain more from improving their skills and exerting a higher effort. The proposals will in particular increase the supply of high wage - and thereby high productivity labour. This contributes to increase the average productivity.

More people employed in private companies

Wealth increases by DKK71bn

Fewer people receiving public benefits will increase wealth by DKK24bn

The Danish society is organized to ensure that people who temporarily or permanently lose the ability to provide for themselves receive public benefit. And many people receive public benefits for a good reason. But there is a potential to implement further reforms that create a more transparent benefit system and move citizens receiving public benefits into employment.

DI suggests that we streamline the provision of disability pension by establishing a central visitation to oversee the scheme. At the same time, we suggest that the disability pension rate be so that the rate corresponds to the reduction in working ability. DI further suggests that the period for receiving sickness benefits is limited so that more people return to the labour market faster.

Moving recipients of cash benefits closer to the labour market will increase wealth by DKK19bn

DI suggests that recipients of cash benefits who cannot work full-time should be required to participate part-time in the labour market to the extent that they are able to work. We suggest that the cash benefit rates for people under 30 should be at the same level as the student grant (SU). And we suggest that all recipients of cash benefits must have a plan for obtaining a job or an education.

Lower taxes on labour and investment increase employment and wealth by DKK19bn

DI suggests that we eliminate the maximum cap on the earned income tax credit and the top rate tax. Thereby people in employment gain more from working an extra hour. DI also proposes a reduction of the corporate tax and of many indirect taxes. This will make it cheaper to conduct business in Denmark and more attractive to invest in Danish companies, and it will increase employment a little.

Overall, DI’s tax proposals will raise employment by around 21,000 persons, which will increase wealth by approximately DKK19bn.

Lowering the top tax rate and eliminating the maximum cap on the earned income tax credit will increase the supply of particularly high wage labour - and thus high productivity labour. Thereby, DI’s tax proposals also raise average productivity, which is accounted for in the section ‘More productive and innovative companies and employees’.

More labour from abroad will increase wealth by DKK9bn

Danish companies urgently need labour and it is increasingly difficult to recruit employees from the Danish labour market. DI suggests that we make it easier to hire foreign labour. This can be achieved by reducing the income requirement for granting non-EU citizens a work permit from DKK408,000 to DKK325,000.